John Healey eyes another tax raid as family businesses warn they are being pushed ‘to extinction’
Andy Burnham's right-hand man will deliver his first Budget as Chancellor on October 28
TL;DR
- Chancellor John Healey is exploring a tax change that could force family businesses to pay income tax instead of capital gains tax when transferring ownership.
- This change could increase tax rates from a maximum of 24% to up to 45%, potentially costing hundreds of thousands of pounds more on a business transfer.
- The move has been criticized by opposition figures as a 'tax raid' that punishes job creators and undermines family firms.
- This comes at a time when UK businesses are already facing increased costs and a near two-year high in profit warnings.
- Other potential tax changes being considered include an increase to the business rates threshold and an expansion of the mansion tax, though some speculation is being downplayed by Downing Street.